Owner-Managed Company: an Advantage or a Challenge?
Smart and Efficient Economy: Preparation for the Future Innovative Economy: Proceedings of Selected Papers 2016
Māris Millers, Elīna Gaile-Sarkane, Deniss Ščeulovs

Purpose of the article Small and medium sized enterprises (SMEs) in Europe represents up to 99% of all businesses and provide two-thirds of the total private sector employment. A large proportion of private-sector enterprises is owned and at the same time managed by individuals or by families. Opinion exists in business literature and among entrepreneurs that growing companies outgrow their founder's managerial capabilities, and unless the founder is replaced or supplemented by "professional" management, performance is predicted to stagnate or decline. This paper contains review literature on challenges for owner-managed companies and owner contribution to performance of the SMEs. Methodology/methods Literature review is undertaken using the overview method in order to identify ways how owners-managers impact SME management system and performance. Key findings were discussed in three focus groups with representatives of Latvian owner-manager companies during September 2015-February 2016. Scientific aim To evaluate through literature review the impact of owner-manager personality on SME performance. Findings This paper identifies variety in terminology around SMEs and their owners-managers, and presents several ways on how owners-manager impacts company management system, performance and culture. Conclusions The literature review draws attention to the controversy of the topic around role of the owner-manager in small and medium sized enterprise. There is evidence of both differences and similarities between owner-managed and professionally managed enterprises from the management systems and performance perspectives. It is identified that issues of owner-manged companies are discussed in publications, using wide range of terminology, including founder-managed and family-owned companies, owner-CEO, and other. There is need for a further study using holistic approach that will include both internal factors influencing management system and performance of owner-managed small and medium enterprises, as well as external factors, such as stakeholder relationships and market conditions.


Atslēgas vārdi
Owner-Manager; Small and Medium Enterprises; Management; Founder-managed Company; Family business
Hipersaite
http://www.icem.lt/public/icem/ICEM_2016_selected%20papers.pdf

Millers, M., Gaile-Sarkane, E., Ščeulovs, D. Owner-Managed Company: an Advantage or a Challenge? No: Smart and Efficient Economy: Preparation for the Future Innovative Economy: Proceedings of Selected Papers, Čehija, Brno, 19.-20. maijs, 2016. Brno: Brno University of Technology, 2016, 579.-585.lpp. ISBN 978-80-214-5413-2.

Publikācijas valoda
English (en)
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